16 Money Rules That All Millionaires Stick To (2 of 4)

Avoid Living Beyond Your Means

Overspending deep down causes a large amount of stress for us. But overspending only stems from instances where we are living well beyond our means. As such, living within our means can cause a whole lot of relief for us. Even if that means cutting back on a ton of things.

Another way to put it into perspective is to look at our bills. The more indebted we are, the more stress those bills will cause us. These can also detract us from our goals as well. So the cheaper we can live, the fewer bills we need to worry about and the more options we’ll have with extra money.

Stay Out Of The Red

Debt is one of the biggest problems that many people face and of course is a contributing factor to people not becoming millionaires. While some debt can be understandable (such as student loans), debt from credit cards isn’t so much.

Work to pay off those debts as best as you can for as long as it’ll take you if you’re in that situation. And once you’re out – or you don’t have any debt to begin with – make an effort to avoid having to get into that situation.

Sleep On Big Purchases

Another trap that people get into is impulse shopping. Of course, marketing products appeal to our emotions and rope us into making decisions in the heat of the moment. The problem is some of those purchases we regret later and in many cases, we don’t return our purchases either.

You can avoid all of these issues – and make sounder financial decisions – if you simply sleep on certain purchases. Whether it’s cheap or really expensive, if it’s not something you absolutely need (like food), then ponder the purchase.

In those situations, you’ll determine whether the purchase is actually practical for you or just a waste of your money and time.

Be Independent

What we mean by this is being entirely financially reliant on yourself. No calling up your friends or your parents or relatives for extra cash. Don’t even rely on your spouse for financial stability.

It’s a powerful concept to be living by and is a good goal to pursue. What it means in essence is that you’re building your wealth in such a way where you won’t have to rely on those close to you to provide your financial needs any longer.